New research by Tech-Clarity and PTC highlights four key success factors that distinguish high performers in Product Lifecycle Management (PLM) from the rest of the pack: • Strategic business alignment • Process-based solution design • Reduced customization of PLM software • Comprehensive, role-based learning and adoption

1. Global Services Insights
High Performance PLM:
Four Keys to Outstanding Business Results
New research by Tech-Clarity and PTC highlights four key
success factors that distinguish high performers in Product Average Improvement for
200 Business and IT Leaders
Lifecycle Management (PLM) from the rest of the pack:
Time 15%
• Strategic business alignment
to Market
10%
• Process-based solution design
5%
• Reduced customization of PLM software 3% Improvement 3%
0%
• Comprehensive, role-based learning and adoption
Product 15%
Development 10%
Efficiency
Sounds pretty obvious, right? Well, sort of. But, as usual, the devil is in 5%
the details. The practical reality is that the companies that actually follow 4%
these approaches in detail achieve business results far greater than those 4% Improvement 0%
which take shortcuts in planning, implementation, and adoption.
Reduced 15%
On average, the 200 business and IT leaders from Europe and North
America in the survey reported modest improvements in the three most Product Cost
10%
important business objectives that drove their PLM investments: time to
market, product development efficiency, and reduction in product cost. 5%
2% Improvement 0% 2%
A recent survey reported modest average
improvement in key PLM business metrics.
About the Research:
PTC Global Services and Tech Clarity, an analyst firm that specializes in product life cycle management, interviewed 190 senior business and IT leaders in April
2012 about their experiences with PLM. The goal of the telephone survey was to understand key success factors in planning, implementing, and adopting PLM solu-
tions in complex manufacturing environments.
The survey highlighted four issues: PLM strategy and approach, programmatic challenges, implementation and adoption techniques, and adoption. Survey partici-
pants included representatives of a wide range of manufacturing companies across Europe and North America, including automotive, aerospace, industrial, and
consumer products.
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2. A Closer Look
Differences in Improvement
Digging deeper into the data, however, we can see that a “high perfor-
mance” group of companies are realizing business improvements five to ten
times as great as the average and lower performing companies.
What are these PLM leaders doing differently?
High Lower
The most important differences lie in how companies plan and manage
Performing Performing
their PLM initiatives, regardless of experience level or scope.
Companies Companies
In particular, high performing companies are much more likely than
others to emphasize four things in planning and managing their
programs: Time to Market
1. Strategic business alignment: Align PLM planning to key business 8.9% 1.5%
objectives with detailed implementation roadmaps and scorecards Improvement Improvement
to ensure program accountability for business value, not just tech-
nical improvements. 15%
2. Process-based solution design: Focus first on business process 10%
improvement and look to software capabilities that support process 8.9%
change, rather than taking a software-first approach. 5%
3. Reduced customization of PLM software: Hold the line on software 1.5%
0%
customization to keep costs in check and preserve flexibility for
future growth and change.
4. Comprehensive, role-based learning and adoption: Take a more Product Development
strategic and role-based approach to learning and adoption of the
new processes and tools vs. relying mostly on basic training for soft- Efficiency
ware features and functions.
13.3% 1.3%
Most companies will naturally gain more value from their PLM programs Improvement Improvement
as time goes by and the organization gains more experience with what 15%
can and cannot be accomplished across the organization. For those that
13.3%
want to accelerate time to value, however, these four key success factors 10%
truly separate the high performers from the rest.
5%
About PTC Global Services 1.3%
0%
The 1400 professionals at PTC Global Services help the world’s leading
manufacturing companies gain product and service advantage through
solution strategy and design, process transformation, technology Reduced Product Cost
configuration, and organizational training and adoption. Our in-house
experts and premium services partners work overtime to ensure the 5.8% 1.1%
best possible results and maximum return on investment. Learn more at Improvement Improvement
P TC .c o m /c o n s u l t i n g. 15%
For more Insights from the Global Services team, please visit 10%
b l o g s .p t c .c o m /c a t e g o r y/s t r a t e g y/. Or scan this code with your
mobile device. 5% 5.8%
1.1%
0%
About the Author © 2012, Parametric Technology Corporation (PTC). All rights reserved.
Information concerning the benefits and results obtained by customers
using PTC solutions is based upon the particular user’s experience and
Rob Leavitt is Director of Thought Leadership at PTC Global Services, testimonial, is furnished for informational use only, and should not be
construed as a guarantee or commitment by PTC. Due to the varying
the consulting arm of PTC. A long-time advisor to top technology and IT
degree of complexity of our customers’ products and/or their design
services firms, Rob works with PTC consultants, partners, and customers processes, typical or generally expected results are not available. PTC, the
to advance understanding of key issues and challenges in product PTC logo and all PTC product names and logos are trademarks or regis-
tered trademarks of PTC and/or its subsidiaries in the United States and in
development, manufacturing, and after-market service. Contact Rob at
other countries. All other product or company names are property of their
rleavitt@ptc.com. Follow Rob on Twitter at @PTC_Consulting. respective owners.
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